SoftBank, a Japan-based conglomerate, was looking for a suitor for semiconductor design company ARM, and eventually agreed with Nvidia for the acquisition. However, there may be an obstacle to this purchase in at least one country. The UK government is reportedly prepared to intervene and block the takeover, if necessary, on the grounds that Nvidia’s acquisition of ARM could not only jeopardize the businesses of its citizens, but also threaten the country’s sovereignty over one of the very few leading tech companies.
Cambridge-based ARM, formerly ARM Holdings, was an independent company until it was acquired by Japan’s SoftBank Group in 2016. As the owner and designer of the world’s most widely used processor technology for mobile and embedded computing systems, ARM has been able to independently run its business model and operations under the ownership of SoftBank. However, there are concerns that things might not be the same with Nvidia to keep the reins.
The UK is particularly concerned about the effects of purchasing on the country’s economy and sovereignty. ARM, a UK-based company, is naturally one of the country’s most valuable assets, and it looks like it won’t be allowed to be delivered without much scrutiny.
Of course, Nvidia has promised that ARM will keep the status quo when it comes to its business model. He has even committed to making the UK a global hub for artificial intelligence research and excellence that can help strengthen the country’s economy and prestige. However, for some British officials, these commitments and opportunities are not seen enough.
In fact, Nvidia’s acquisition of ARM may face similar scrutiny by other regulators in the US and EU, as Nvidia will provide a competitive advantage over its competitors. The potential to exploit this ownership at the expense of competing ARM customers is too great to be ignored. The purchase agreement will be made for a value of $ 40 billion.